UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
December
2, 2010
Date of
Report (Date of earliest event reported)
CORNERSTONE
REALTY FUND, LLC
(Exact
name of registrant as specified in its charter)
California
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000-51868
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33-0827161
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(State
of Incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
Number)
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1920
Main Street., Suite 400
Irvine,
California 92614
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(Address
of principal executive offices)
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(949)
852-1007
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following
provisions.
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14d-2(b)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)
Item
1.01 Entry into a Material Definitive Agreement
The information in this report set
forth under item 2.03 is incorporated herein by reference.
Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
On
December 2, 2010, we entered into a $4.0 million loan agreement with Farmers & Merchants Bank of Long Beach, a
California corporation. The loan matures on November 19, 2013 with no option to
extend and bears interest at a fixed rate of 5.75% per annum. Monthly payments
of principal and interest will be due under the loan in the amount of $23,556. A
final irregular payment of approximately $3,862,363 will be due and payable on
the maturity date. We may repay the loan, in whole or in part, on or before
November 19, 2013 without any penalty. The loan agreement contains various
covenants including financial covenants with respect to debt service coverage
ratios and loan to value ratio.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CORNERSTONE
REALTY FUND, LLC
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By:
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CORNERSTONE
INDUSTRIAL PROPERTIES, LLC
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Its
Managing Member
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By:
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CORNERSTONE
VENTURES, INC.
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Its
Manager
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By:
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/s/
Sharon C. Kaiser
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Sharon
C. Kaiser, Chief Financial Officer
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Dated:
December 7, 2010
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